Three things every Realtor and Lender should know about Power of Attorney documents (also commonly known as “POA”):
#1: 99% of Power of Attorneys are prepared incorrectly and not suitable for closing unless they were prepared by the title company or real estate attorney handling the actual closing.
#2: 99% of title companies and real estate attorneys will not accept a power of attorney for the signing of any deed by a seller. The criteria in Florida are very stringent for valid POA deed signings and most companies won’t take the risk.
#3: 99% of banks wont allow a Power of Attorney signing on a loan document. If they do allow it, the Power of Attorney will have to be approved by lender’s legal counsel far in advance of closing.
Here is a real world example of a POA that won’t work for a real transaction:
For a Power of Attorney to work for a real estate transaction, it must contain the following essential elements:
- The Principal-Grantor(s) full legal name, mailing address and marital status
- Full legal name and mailing address of designated Attorney-in-fact (“the POA”)
- Full legal description of the property being purchased or refinanced from the title commitment
- Specific powers being granted to the Power of Attorney (i.e. signing mortgage, note, HUD, affidavits, etc.)
- expiration date, if applicable
- Two witnesses
- If any of the documents will be recorded in public record, the Power of Attorney must also contain as per Florida law, an Attorney in Fact Affidavit.
If your buyer has not yet selected a specific property and is leaving town- NOT A PROBLEM! The Power of Attorney can contain all the above elements and state “exhibit A” for the legal description which can be added to document once a property has been selected! A flexible, simple and effective solution.
Need a Power of Attorney prepared? Download our Power of Attorney Order Form and we will get it done for you!
Please contact firstname.lastname@example.org or call 305-271-0100×701 for more information.
Legal disclaimer: I am not an attorney and I am not providing legal advice. I am not a Certified Public Accountant and am not providing tax advice. Please consult with a licensed Attorney for legal advice or before signing any legal documents. Please consult with a CPA for tax planning and tax advice.